| Date: |
05-08-2011 |
| Subject: |
Rupee Slumps To 5-Week Low On Equities Rout, Euro Fall |
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MUMBAI: The Indian rupee dived to its lowest in over 5-weeks as the slump in global equities was mirrored in local shares, sparking fears of foreign fund outflows.
* At 9:15 a.m., the partially convertible rupee was at 44.78/79 per dollar, its lowest since June 29. The unit had closed 0.5 per cent weaker at 44.545/555 on Thursday.
* Persistent demand for dollars from domestic oil companies for Iran payments may weigh on rupee, traders said.
* The local benchmark share index fell over 2.5 per cent in early trade tailing Asian stocks that tumbled as much as 5 per cent after Wall Street faced its worst sell-off since the global financial crisis.
* The euro was at $1.4095, down from $1.4246 at end of local forex trade on Thursday, while the index of the dollar
against six major currencies was up 0.10 per cent to 75.195 points from 74.766 points previously.
* Japanese policymakers intervened to stem a sharp rise in the yen against the dollar this week. Japan's yen selling was its first since March 18 when the Bank of Japan and other major central banks jointly intervened after the yen surged to a record high versus the greenback.
Source : economictimes.indiatimes.com
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